Nagoya Railroad Co., Ltd. · TSE:9048
Nagoya Railroad — FY2020 Earnings Presentation
40 slides from Nagoya Railroad's earnings presentation, May 27, 2021
Slide 1: Fiscal Year Ended March 31, 2021 Presentation for Investors
Fiscal Year Ended March 31, 2021 Presentation for Investors Nagoya Railroad Co., Ltd. Securities Code: 9048 May 27, 2021 Copyright © Nagoya Railroad Co., Ltd.
Slide 2: Current Situation, Management Issues, and Measures to Address Management Issues
Current Situation, Management 01 Issues, and Measures to Address Management Issues Copyright © Nagoya Railroad Co., Ltd. 01
Slide 3: Group Business Performance
Group Business Performance ■Group Business Performance ■ Quarter Trends (billions of yen) Change from Year-on-year 500 Results forecast [Operating income] change (from Feb.) 400 Billions Billions 300 Operating revenues 481.6 of - 141.2 - 22.7 % + 4.6 of yen yen 47.3 200 Billions Billions 100 Operati
Slide 4: The Company's Passengers
The Company’s Passengers ■ Railroad Passengers Trends ⮚ Total number of passengers (FY2020) [Total] FY2019 FY2020 the number of COVID-19 cases of Aichi 296.23 millions of people * Figures on graphs are year-on-year changes. Year-on-year comparisons -24.8％ (Unit: People) Figures in parentheses are pe
Slide 5: Management Issues Based on the Current Situation and Changes in the Business Environment
Management Issues Based on the Current Situation and Changes in the Business Environment Business Environment Current Situation After the COVID-19 Situation Remote working, Likely to stay somewhat common, Expanding Online classes・Conferences except for online classes Gradual spread from urban center
Slide 6: Restructuring the Railroad business (1)
Restructuring the Railroad business (1) FY2021 ⇒ Amid the ongoing pandemic, we are focusing on measures to cut current costs with the aim of achieving profitability 【Premise for railroad profitability】 We assume FY2021 revenues will be around 80% of FY2019 revenues ⇒ Operating expenses Compared with
Slide 7: Restructuring the Railroad business (2)
Restructuring the Railroad business (2) FY2022 and beyond ⇒ We are focusing on structural business reforms to realize long-term stable management even with lower revenues after the pandemic 【Premise for railroad profitability】 We assume revenues will gradually recover, reaching around 90% of FY2019
Slide 8: Restructuring the travel and bus tour businesses
Restructuring the travel and bus tour businesses Selecting and focusing on business fields and building efficient management through business downsizing 【Travel business】 【Bus tour business】 ＜Main effort＞ ＜Main effort＞ ⮚ Integrating and closing branches ⮚ Reducing the number of buses ⇒ We plan to re
Slide 9: Restructuring the hotel businesses
Restructuring the hotel businesses Streamlining and reorganizing our management structure We reorganized the Group’s hotel business under the newly founded Meitetsu Hotel Holdings Nagoya Railroad Task ・ We did not have sufficient ability to uniformly manage and operate Meitetsu Hotel Holdings the Gr
Slide 10: Expanding development businesses in city centers, key stations along train lines, and areas around stations
Expanding development businesses in city centers, key stations along train lines, and areas around stations We will stably expand development businesses in city centers and expanding services rooted in lives in areas City center Key stations and areas around stations (Redevelopment plan) Development
Slide 11: Drumming up tourism by strengthening alliances with communities
Drumming up tourism by strengthening alliances with communities Drumming up tourism in Inuyama We are looking to capture micro-tourism and domestic travel demand. Seizing the opportunity presented by the opening of two new hotels, we are working with local municipalities and communities to create at
Slide 12: Revising the profit structure by reinforcing earnings power in fields where growth is expected (1)
Revising the profit structure by reinforcing earnings power in fields where growth is expected (1) Further strengthening competitive businesses, including Real Estate, Transport and Aviation business Further strengthening the Real Estate business ＜Future＞ ⮚ Fostering desire for urban renewal with th
Slide 13: Revising the profit structure by reinforcing earnings power in fields where growth is expected (2)
Revising the profit structure by reinforcing earnings power in fields where growth is expected (2) Generating profit in new fields using the Group’s management resources ① New expansion of the bakery business ② New expansion of the restaurant business Concluded an exclusive master franchise contra
Slide 14: Promoting DX (1)
Promoting DX (1) Group transformation through DX promotion By promoting DX, we aim to reform our business model with the aim of providing new services to customers and to reform our business environment with the aim of reducing costs and achieving more sophisticated operations. Offering added value
Slide 15: Promoting DX (2)
Promoting DX (2) Promoting regional MaaS (Meitetsu MaaS) Aiming to realize seamless, stress-free mobility by connecting regional transit, lifestyle, and sightseeing services for customers who routinely access the Meitetsu Group’s train lines and neighboring areas, especially in the prefectures of Ai
Slide 16: The Meitetsu Group's Medium-term Management Plan Turn-Over 2023
The Meitetsu Group’s Medium-term 02 Management Plan 「Turn-Over 2023」 Numerical Targets Copyright © Nagoya Railroad Co., Ltd. 15
Slide 17: Numerical Targets
Numerical Targets 【Business environment assumptions for the period of the medium-term management plan】 ◎Railroad revenues We assume that, compared to FY2019, profit in FY2021 will be around 80% and gradually recover to around 90% by FY2023. ◎Demand from overseas visitors We assume that, compared to
Slide 18: Investment Plans
Investment Plans We will move ahead with strategic investments that contribute to structural business reforms and the construction of a foundation for growth after first investing to ensure safety and compliance while maintaining a policy of staying within the scope of operational cash flows. ➢ Inve
Slide 19: FY2020 Financial Results
03 FY2020 Financial Results Copyright © Nagoya Railroad Co., Ltd. 18
Slide 20: FY2020 Financial Results
FY2020 Financial Results ＊Figures in parentheses are the year-on-year percent change. (Units: Millions of yen, %) Latest Forecast FY2020 FY2019 Change* Notes (As of Feb.) Change -141,271 4,645 Operating revenues 481,645 622,916 477,000 (-22.7) (1.0) Operating expenses 498,000 575,553 -77,553 Cost of
Slide 21: Financial Results Highlights
Financial Results Highlights Year-on-year: Lower revenues・Record losses （ Revenues decreased in all segments due to the COVID-19 pandemic. Profit decreased in all segments, a loss in the Traffic, Leisure and services, Distribution.） (Unit: Billions of yen) － Traffic :-58.5（Railroad:-31.5（Passengers-
Slide 22: Operating Results by Segment
Operating Results by Segment (Units: （単位：百万円、％） Millions of yen, %) Operating revenues FY2020 FY2019 Change Percent Change Traffic 104,995 163,544 -58,549 -35.8 Transport 128,901 138,220 -9,318 -6.7 Real Estate 85,402 100,869 -15,466 -15.3 Leisure and Services 20,007 50,137 -30,130 -60.1 Distributio
Slide 23: Traffic Business
Traffic Business (Units: Millions of yen, %) Percent FY2020 FY2019 Change Notes Change Lower revenues in all businesses due to Operating 104,995 163,544 -58,549 -35.8 efforts to stay home caused by the COVID- revenues 19 pandemic Operating -17,866 21,577 -39,443 ― Loss due to lower revenues income ◆
Slide 24: Transport Business
Transport Business (Units: Millions of yen, %) Percent FY2020 FY2019 Change Notes Change Lower revenues in all sub-segments due in Operating 128,901 138,220 -9,318 -6.7 part to decrease in cargo handling volumes revenues caused by the COVID-19 pandemic Lower income in the Truck Business and a Operat
Slide 25: Real Estate Business
Real Estate Business (Units: Millions of yen, %) Percent FY2020 FY2019 Change Notes Change Lower revenues in all businesses due in Operating part to lower number of condos sold and 85,402 100,869 -15,466 -15.3 due in part to decreased parking space revenues revernue in the Rental Operating 10,667 14
Slide 26: Leisure and Services Business
Leisure and Services Business (Units: Millions of yen, %) Percent FY2020 FY2019 Change Notes Change Lower revenues in all sub-segments due to Operating 20,007 50,137 -30,130 -60.1 the decrease in tourism demand caused revenues by the COVID-19 pandemic The Hotel and Tourist Facilities businesses Oper
Slide 27: Distribution Business
Distribution Business (Units: Millions of yen, %) Percent FY2020 FY2019 Change Notes Change Lower revenues in all sub-segments due to Operating efforts to stay at home and temporary 111,272 140,538 -29,265 -20.8 department store closures caused by the revenues COVID-19 pandemic The Department Stores
Slide 28: Aviation Services Business
Aviation Services Business (Units: Millions of yen, %) Percent FY2020 FY2019 Change Notes Change Lower revenues due to decreased orders Operating 22,983 27,251 -4,268 -15.7 received in the In-Flight Catering Business revenues caused by the COVID-19 pandemic Operating 1,959 2,616 -657 -25.1 Lower inc
Slide 29: Others
Others (Units: Millions of yen, %) Percent FY2020 FY2019 Change Notes Change Lower revenues due to decreased orders Operating 45,862 52,123 -6,261 -12.0 received caused by the COVID-19 revenues pandemic Operating 1,752 2,854 -1,101 -38.6 Lower income due to lower revenues income ◆ Breakdown of Other
Slide 30: Non-Operating Income and Extraordinary Income
Non-Operating Income and Extraordinary Income (Units: Millions of yen) FY2020 FY2019 Change Notes Non-operating income 12,626 6,384 6,242 Interest income 25 25 -0 Dividend income 1,259 1,889 -629 Equity in net earnings of affiliates 1,253 2,562 -1,308 Others 10,089 1,907 8,181 （FY2020）Subsidies for
Slide 31: Consolidated Balance Sheets
Consolidated Balance Sheets (Units: Millions of yen) FY2020 FY2019 Change Notes Current assets 215,097 189,143 25,954 Increase in cash and deposits due to financing Non-current assets 976,033 975,836 197 Property and equipment 831,429 831,771 -342 Intangible assets 9,222 10,002 -779 Higher investmen
Slide 32: EBITDA and Capital Investment
EBITDA and Capital Investment （単位：百万円） (Units: Millions of yen) FY2020 FY2019 Change FY2020 FY2019 Change Operating income -17,866 21,577 -39,443 Operating income -2,185 330 -2,515 Depreciation and Depreciation and amortization 18,351 18,577 -226 amortization 1,185 2,384 -1,199 Traffic ＥＢＩＴＤＡ(①) 485
Slide 33: FY2021 Operating Results Forecast
04 FY2021 Operating Results Forecast Copyright © Nagoya Railroad Co., Ltd. 32
Slide 34: Premise conditions of Operating Results Forecast
Premise conditions of Operating Results Forecast The FY2021 forecast assumes that the number of COVID-19 cases will gradually decline into March 2022. Operating Revenues（Compares with FY2019） Traffic Railroad ・ Bus ・ Taxi…Around 80% Transport Truck ・ Maritime Transport…Around 90% Real Estate Real Es
Slide 35: FY2021 Consolidated Operating Results Forecast
FY2021 Consolidated Operating Results Forecast (Units: Millions of yen) FY2021 FY2020 Percent FY2019 Percent Change Change forecast results Change results Change Operating revenues 530,000 481,645 48,355 10.0 622,916 -92,916 -14.9 Operating income 13,000 -16,354 29,354 ― 47,363 -34,363 -72.6 Non-ope
Slide 36: Operating Results Forecast Highlights① (Year-on-year)
Operating Results Forecast Highlights①（Year-on-year） (Recovery centered on Leisure and Service and Traffic, overall sales increased. Year-on-year：Higher revenues and profit We expect each category of income will return to the black due to higher revenues.） (Unit: Billions of yen) Operating Revenues
Slide 37: Operating Results Forecast Highlights② (Compared with FY2019)
Operating Results Forecast Highlights②（Compared with FY2019） Compared with FY2019： （After excluding the effects of the new profit recognition standards, revenues are expected to fall across all businesses. Lower revenues and lower profit Each category of income is expected to decrease due to the dec
Slide 38: FY2021 Operating Results Forecast by Segment
FY2021 Operating Results Forecast by Segment (Units: Millions of yen, %) FY2021 FY2021 FY2020 Percent Percent FY2019 Percent Percent Operating revenues Change Change forecast forecast* results Change Change* results Change Change* Traffic 132,800 132,000 104,995 27,805 26.5 25.7 163,544 -30,744 -18.
Slide 39: FY2021 EBITDA and Capital Investment Forecast
FY2021 EBITDA and Capital Investment Forecast (Units: Millions of yen) FY2021 FY2020 FY2019 FY2021 FY2020 FY2019 Change Change Change Change forecast results results forecast results results Operating income 3,500 -17,866 21,366 21,577 -18,077 Operating income -1,100 -2,185 1,085 330 -1,430 Deprecia
Slide 40: Notice on future projections, risks and uncertainty
In addition to factual past events, this document includes future projections, which contain risks and uncertainty. Please be advised that actual outcomes may vary based on a variety of factors. Copyright © Nagoya Railroad Co., Ltd.